AppLovin Stock Jumps as Scotiabank Lifts Price Target to $575
Shares surged nearly 5% after the bank cited strong earnings momentum and raised its forecast by almost 28%, fueling bullish sentiment.
Shares of AppLovin Corp. (APP) jumped 4.75% on Wednesday after Scotiabank significantly raised its price target on the advertising technology firm, citing a positive outlook on the company's financial performance.
Analyst Nat Schindler reiterated a 'Sector Outperform' rating on the stock and boosted the firm's price target by 27.8% to $575 from $450. The upgrade was attributed to AppLovin's robust earnings momentum and accelerating cash flow, signaling strong confidence in the company's growth trajectory.
The bullish analyst action sent the stock to $482.44, pushing it past its 30-day and 200-day moving averages in a move backed by elevated trading volume. Technical indicators like the MACD and RSI signaled accelerating bullish momentum, though some analysts noted the stock was approaching overbought conditions.
Scotiabank's optimistic revision is the latest in a series of positive Wall Street updates for AppLovin. Wells Fargo and Morgan Stanley have also recently raised their price targets while maintaining 'Overweight' ratings. Across 21 analyst firms, the average price target for AppLovin sits at $506.11, with a consensus 'Outperform' rating, according to data from GuruFocus. This suggests a broad-based belief in the company's strategy, which is centered on its AppDiscovery platform and AXON 2 ad optimizer.
The recent price action has also sparked significant activity in the options market, with traders making aggressive bets on further upside. Market watchers are now eyeing key technical levels, with a break above the $490 resistance potentially opening a path toward the stock's 52-week high of $525.15.